On Friday Norway kicked off the development of the mammoth Johan Sverdrup oil field in the North Sea, that is, a $14.4bn investment at its first phase.
Johan Sverdrupis the father of Norwegian parliamentarianism, but it is also the name of an immense oil field in the North Sea, about 155 km off Norwegian coast and the city of Stavanger. It is estimated to generate revenues of $177 bn dollars.
The field was discovered in 2010 and can expected be operated for 50 years. It is expected to hold reserves of 1,8-to-2,9 bn barrels and it is the biggest field discovered since 1980.
In the first phase of its development, by 2019, the field is expected to yield between 319,000 to 380,000 barrels a day, culminating to 550,000 – 650,000 at a later stage. Norway currently produces approximately 1,5 miilion barrels a day.
Headed by Statoil, this is a rare world class investment in a sector that has been suffering from ever declining oil prices. Minority stakes are held by Denmark’s Maersk logistics group (8,5%), Sweden’s Lundin group (22,60%), and other Norwegian groups.
Oil and gas accounts for 20% of the country’s GDP; although the standoff with Russia and the war in Ukraine has by default benefitted Norway – which surpassed Russia in European market share – the economy has suffered from declining revenue. Norway’s current 4,3% unemployment is the highest in a decade. The field is expected to generate 51,000 jobs.
http://www.neurope.eu/article/norway-kicks-off-mammoth-oil-field-development-project/